The December gold futures price has under-extended from the 30-day moving average by nearly 4 percent as of last week. This is significant since a long-term research history of gold shows that whenever price extends by approximately 4 percent +/- above or below the 30-day MA, a technical reversal usually follows shortly thereafter. Gold is technically oversold on a short-term basis and is therefore vulnerable to a relief rally in the upcoming days. The extent and magnitude of the next relief rally, however, will depend in large measure on either a large short interest (which apparently doesn’t exist right now) or else buying interest among institutions and hedge funds looking for bargains. http://www.financialsense.com/contributors/clif-droke/can-gold-finally-recover